The Pakistan Telecommunication Authority (PTA) has approved the long-anticipated amalgamation of Telenor Pakistan into Pak Telecom Mobile Limited (PTML), but only after imposing an extensive set of conditions aimed at protecting consumers, maintaining competition, and ensuring service quality across the country.
At the heart of the decision is a clear message: the merger may proceed, but under tight regulatory oversight. The PTA has directed that PTML (the surviving entity, commonly known as Ufone) must fully assume all liabilities, obligations, and regulatory responsibilities of Telenor Pakistan once the merger is finalized.
The Authority has made it mandatory for both companies to continue operating independently and complying with all license conditions until the legal amalgamation is completed. PTML will be required to unconditionally accept all existing obligations tied to Telenor’s licenses, including compliance with service standards, financial dues, and regulatory frameworks.
To prevent market disruption, PTA has ordered that franchise and retailer agreements remain unchanged for at least six months after the merger. Consumers must also be clearly informed about the merger through nationwide advertisements in both Urdu and English newspapers.
In a significant consumer protection measure, the regulator has barred automatic renewal of subscription packages without explicit user consent and mandated the introduction of a free “balance save service” within 60 days. Additionally, no value-added services (VAS) can be activated without verified customer approval.
Tariffs will remain under strict scrutiny. PTML, post-merger, will not be allowed to introduce or revise pricing for retail or wholesale services without prior PTA approval. The Authority has explicitly prohibited predatory pricing and cross-subsidization practices that could distort competition.
The merger follows the acquisition of Telenor Pakistan by Pakistan Telecommunication Company Limited (PTCL) in late 2025, bringing both operators under a single corporate umbrella. Currently, Pakistan’s telecom market has four major cellular operators. The combined entity, often referred to as “MergeCo” in the PTA order, will control approximately 31.7% of market revenue and 35.7% of subscribers, making it a dominant player.
The PTA acknowledged that the consolidation could increase market concentration and potentially enable anti-competitive behavior. To counter this, it has imposed strict requirements on interconnection, infrastructure sharing, and fair access.
MergeCo must provide non-discriminatory access to its network and infrastructure to all telecom operators and cannot favor its affiliates. All interconnection agreements will be subject to regulatory approval, and any changes must be vetted by the Authority.
On the technical front, PTA has laid out an ambitious roadmap for network integration. PTML must submit a detailed Network Integration and Project Implementation Plan within 60 days, outlining how the two networks will be merged without disrupting services. The merged entity is required to maintain, and eventually improve, existing coverage and capacity. Any dismantling of network sites must not reduce pre-merger service levels. Decommissioned sites must be retained for at least three months, and other operators will be given priority to acquire them.
Quality of service benchmarks have also been tightened. The PTA has set progressive targets for mobile internet speeds, requiring median download speeds to reach 20 Mbps within two years, 35 Mbps within four years, and 50 Mbps within nine years. Network downtime limits have been defined at multiple administrative levels, ensuring reliability across union councils, districts, and nationwide coverage.
Spectrum and infrastructure oversight
Following the merger, the combined entity will hold over 56 MHz of spectrum across multiple frequency bands, significantly enhancing its capacity. However, the PTA has warned that spectrum must be used efficiently, and any underutilized resources may have to be returned.
The Authority also retains the right to require spectrum reconfiguration in coordination with relevant government bodies.
Additionally, PTML must ensure fair and transparent access to co-location facilities and cannot offer preferential treatment to related parties.
The PTA has emphasized that consumer interests remain central to its decision. The merged company must adhere strictly to consumer protection regulations, avoid unfair marketing practices, and ensure transparency in all offerings.
Customers will have the option to continue using existing packages for at least three months after the merger, ensuring a smooth transition without forced changes. The Authority has also mandated that all VAS offerings be clearly visible and easily deactivatable, addressing long-standing complaints about unauthorized service activations.
The PTA has formally approved the application for license transfer and amalgamation, originally submitted on January 22, 2026, but made the issuance of a No Objection Certificate (NOC) conditional upon both parties accepting all imposed terms within 15 days.Once the merger is legally completed, Telenor Pakistan will cease to exist as a separate entity, and all its licenses will be absorbed by PTML.
The decision marks one of the most significant consolidations in Pakistan’s telecom sector in recent years. a move that could reshape competition, pricing strategies, and service delivery in the industry.
However, with an extensive compliance framework in place, the PTA has made it clear that while consolidation is allowed, it will not come at the expense of consumers or fair competition.
